Non-financial incentives also known as psychological incentives, are usually given in the form of amenities or facilities, do not offer cash reward to the employee for any specific or measured work done. Such non-monetary benefits create psychological effect by making the working conditions and terms of employment lucrative enough to induce the employee to increase his efforts. The benefit goes to all the employees in the undertaking and is not limited to any individual, class or group.
The
non-financial incentives may be offered in several ways :
(a)
Favourable working conditions
(b)
Medical facilities to the individual and his family
(c)
Educational facilities
(d)
Welfare measures
(e)
Cheap grains
(f)
Subsidised canteen
(g)
Recreational amenities
(h)
Housing facilities
(i)
Pension schemes
(j)
Fund contributions
(k)
Protective clothing, liveries, uniforms etc
(l)
Tea, milk, etc for specially ardous work.
The
non-monetary incentives of motivation also include: appraisal, job
evaluation, ranking, classification, factor comparison, points rating,
assessment centres and performance related pay.